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and Innovation

Chapter Seventeen

Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objectives
LO 1 List the types of processes that spur
development of new technologies.
LO 2 Describe how technologies proceed
through a life cycle.
LO 3 Discuss ways to manage technology for
competitive advantage.
LO 4 Summarize how to assess technology


Learning Objectives (cont.)

LO 5 Identify alternative methods of pursuing
technological innovation.
LO 6 Define key roles in managing technology.
LO 7 Describe the elements of an innovative
LO 8 List characteristics of successful
development projects.


Technology and Innovation

 Technology
 The systematic
application of
scientific knowledge
to a new product,
process, or service.


Service 17-5 . Quality C. Innovation B. Speed D. Question ___________ is a change in method or technology. A.

Technology and Innovation Innovation  change in method or technology  positive. 17-6 . useful departure from previous ways of doing things.

Must be able to convert the scientific knowledge into practice in both engineering and economic terms 17-7 . Meeting the need must be theoretically possible. and the knowledge to do so must be available from basic science 3. Must be a need. or demand. for the technology 2. Forces Driving Technological Development 1.

The funding. Entrepreneurial initiative is needed to identify and pull all the necessary elements together. Forces Driving Technological Development 4. time. 17-8 . skilled labor. and other resources needed to develop the technology must be available 5. space.

Technology Life Cycle Technology life cycle  A predictable pattern followed by a technological innovation. 17-9 . from its inception and development to market saturation and replacement.

1 17-10 . The Technology Life Cycle Figure 17.

Technology Dissemination Pattern and Adopter Categories Figure 17.2 17-11 .

iPhone6 © 2014 by McGraw-Hill Education. In-class discussion – How do you think about yourself of buying a new smart phone? Note 4. 12 .

Diffusion of Technological Innovations Innovators Early Laggards Adopters Late Early Majority Majority 17-13 .

infrastructures. and ways of thinking  Has less rather than greater complexity  Can be tried and tested easily without significant cost or commitment  Can be observed and copied easily  Question – why GSC’s mobile booking can be easily implemented? 17-14 .Diffusion of Technological Innovations  An innovation will spread quickly if it  Has a great advantage over its predecessor  Is compatible with existing systems. procedures.

Advantages and Disadvantages of Technology Leadership Table 17.1 17-15 .

Technology “Follower”-ship A manager’s decision on when to adopt new technology also depends on the potential benefits of the new technology. as well as the organization’s technology skills Following the technology leader can save development expense 17-16 .

Dynamic Forces of a Technology’s Competitive Impact Figure 17. DVD products that are produced after creation of computer 17-17 .3 Pendrive.

External audit D. Benchmarking C. Managerial audit B. Question What is the process of clarifying the key technologies on which an organization depends? A. Technology audit 17-18 .

Assessing Technology Needs  Technology audit  Process of clarifying the key technologies on which an organization depends 17-19 .

Flexible display paper 17-20 . Measuring Current Technologies  Emerging technologies  Pacing technologies are still under have yet to prove their development and thus are full value but have the unproved – Google’s fully potential to alter the automatic car rules of competition by providing significant advantage  Eg.

g.g. everyone not everyone uses must have them to be them able to operate  E. E- Commerce websites for Airlines 17-21 . Measuring Current Technologies  Key technologies have  Base technologies are proved effective. LCD projectors for universities/college. GSC App  E. but those that are they also provide a commonplace in the strategic advantage but industry.

Scanning D. Benchmarking B. Question What is the process of comparing the organization’s practices and technologies with those of other companies? A. Quality control C. Environmental scanning 17-22 .

Assessing External Technological Trends Benchmarking  the process of comparing the organization’s practices and technologies with those of other companies –focus on key technologies 17-23 .

Assessing External Technological Trends Scanning  focuses on what can be done and what is being developed –focus on pacing or even emerging  places greater emphasis on identifying and monitoring the sources of new technologies for an industry 17-24 .

Key Factors to Consider in Technology Decisions Anticipated market receptiveness Technology feasibility Economic viability Anticipated capability development Organizational suitability 17-25 .

Framing Decisions about Technological Innovation Table 17.2 17-26 .

Class Activity Watch the video clips Discuss the products based on the key factors © 2014 by McGraw-Hill Education. 7-27 .

17-28 . Sourcing and Acquiring New Technologies Make-or-buy decision  The question an organization asks itself about whether to acquire new technology from an outside source or develop it itself.

computers other industry  Contracted  Research development partnerships and  Licensing – e. Sourcing and Acquiring New Technologies  Internal development  Technology trading –  Purchase – checking trades in e.g. joint ventures Software License  Acquisition of the owner of the technology 17-29 .g.

Are the time. and resources for internal development available? 3. Is the technology readily available outside the company? 17-30 . Is it important (and possible) in terms of competitive advantage that the technology remain proprietary? 2. Sourcing and Acquiring New Technologies Managers should ask the following basic questions: 1. skills.

Technology Acquisition Options Figure 17.4 17-31 .

CTO D. CIO 17-32 . COO B. Question Which executive is in charge of information technology strategy and development? A. CEO C.

Technology and Managerial Roles Chief information officer (CIO)  executive in charge of information technology strategy and development.  coordinates the technological efforts of the various business units  identifies ways that technology can support the company’s strategy  supervises new-technology development 17-33 .

17-34 . Technology and Managerial Roles Technical innovator  A person who develops a new technology or has the key skills to install and operate the technology Product champion – leadership in technology – Apple and Samsung  A person who promotes a new technology throughout the organization in an effort to obtain acceptance of and support for it.

Technology and Managerial Roles  Executive champion  An executive who supports a new technology and protects the product champion of the innovation. 17-35 .

Requirements for Innovation Figure 17.5 Equal 17-36 .

Organizing for Innovation Unleashing creativity involves encouraging creativity and celebrating failure Bureaucracy busting is necessary because bureaucracy is the enemy of innovation 17-37 .

3 17-38 . 3M’s Rules for an Innovative Culture Table 17.

Organizing for Innovation Development project  A focused organizational effort to create a new product or process via technological advances 17-39 .

Organizing for Innovation Sociotechnical systems  An approach to job design that attempts to redesign tasks to optimize operation of a new technology while preserving employees’ interpersonal relationships and other human aspects of the work  E. GotoMeeting software 17-40 .g.

Compensation Practices in Traditional and Advanced Manufacturing Firms Table 17.4 17-41 .